Report from Vancouver Junior Mining Conference by Dr. Airtime in IV Board.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96116711
Mawson West (MWE.TO)
- Dirt cheap high-grade copper miner in Congo that others on this board have looked at and has been a pick of some in PSL 23 & 24 last year. $96M MC, $48M of internally generated cash and $7.5M debt which represents the last principal payment on their bank debt facility due soon. $54M EV.
- Congo = country risk of course.
- Dikulshi mine has been source of cash flow to date. Open pit ore is now exhausted and they are transitioning to underground. Per IR, 2014 will see a cash flow drop as they transition, but the story here is the next Kapulo mine which will be operating in H2-2014.
- Kapulo has $125 in capex and $75M has been spent to date with $50M remaining. It sounded like they will not commit their $48M in cash balance but will easily be able to renew their bank debt with current lender as they will be in good standing when it is retired in a couple months (last $7.5M principal payment above). Likely to draw another $50M in bank debt. Dividend is then a possibility when Kapulo is running.
- Kapulo has a 6year mine life with P&P reserves. Likely to come in at 8 year when all is said and done. The 6 years of P&P reserves are only on the Shaba deposit but they have a another open pit target with M&I resources 6km from the Shaba mill that will increase it to AT LEAST 8 YEARS.
- Lots of risk in Congo so Mawson won’t get 1.0X NAV but per the Kapulo feasibility, the project’s pre-tax NPV10% was $157M but that was assuming $69M in Capex while the spend will come in at $125M. See feasibility release below
http://www.mawsonwest.com.au/IRM/Company/ShowPage.aspx/PDFs/927-36085522/PresentationKapulo...
- Not sure what to make of capex overrun. IR said that they overbuilt the mill substantially.
- Top 40 shareholders own 80% of Mawson West per IR
MWE
mawson west ltd
